#ETHOedtherise The real was the 7th currency that depreciated the most in 2024 compared to the dollar. The Brazilian exchange rate has accumulated a 20% drop from January to this Friday (November 29, 2024), according to the ranking sent by the Austin Rating agency to Poder360. Brazil did not appear in the top 5, but it is only better than countries with economic problems - such as Ethiopia and Venezuela. The real is as devalued as the Argentine peso, a country where annualized inflation is 193%. The survey considers variations in the so-called ptax, the reference rate for the US dollar in reais calculated by the Central Bank. It is different from the commercial rate, used in transactions (which records a greater devaluation, of 23.7%). DOLLAR BREAKS RECORD The commercial dollar ended this Friday (November 29) at R$6.001, the highest closing level in history. The market is reacting to the fiscal package announced by the economic team of President Luiz Inácio Lula da Silva (PT). The biggest doubt is regarding the expected savings of R$70 billion in 2 years. Financial agents say that the government inflated the projection. It also drew attention to the fact that the government announced an exemption from Income Tax for those who earn up to R$5,000 – a measure that harms revenue collection. It should only come into effect in 2026. Finance Minister Fernando Haddad said that the loss of money will be offset by the increase in taxes charged to people with incomes above R$50,000, but did not provide sufficient details. Haddad said early in the afternoon that there will be “difficult weeks” for the economy due to the rise in the dollar. Despite this, he said he expects relief in the future. “If you explain what you are doing, if you are consistent with your actions, you will re-anchor this”, declared the minister at the Annual Luncheon of Bank Executives, in São Paulo. The dollar had closed very close to R$6 on Thursday (November 28), the day before the record level. It was quoted at R$5.99.Austin Rating's chief economist, Alex Agostini, said that the global trend is for the dollar to rise, especially with Donald Trump's victory in the United States. According to him, a credible fiscal commitment by the government would help to curb its depreciation. "None of this is enough to counter this expansionist fiscal policy, which has been a major concern for the market. Mainly in relation to the sustainability of public debt and not just in relation to meeting the fiscal target," he told Poder360. HADDAD'S PACKAGE Haddad announced a ceiling for the adjustment of the minimum wage. It will be 2.5% above the INPC (National Consumer Price Index) for the 12 months up to November of the previous year. This is the most credible measure in the package. Previously, it was based on the variation in GDP (Gross Domestic Product) for the previous 2 years. The main objective of the package is to balance public accounts and meet fiscal targets. The government wants spending to be equal to revenue in 2025 (a zero deficit is expected). In the following years, the goal is to end up with the accounts in the black. In practice, it is necessary to increase revenue and reduce expenses. Little has been done on the side of the 2nd option, even with Lula 3 almost halfway through. Read more at Poder360